RECYCLING   MARKET   DEVELOPMENT   ZONE   (R M D Z)

Quick Reference

Recycling Zone

Frequently Asked Questions

General Information
Phone 530.538.2495
Fax 530.538.2539
E-mail businessassistance@cityoforoville.org

	www.ciwmb.ca.gov/RMDZ/AllZones.asp
	www.ciwmb.ca.gov/RMDZ/loans
	www.ciwmb.ca.gov/RMDZ/

Oroville Recycling Zone

      The California Recycling Market Development Zone is an area that is set aside in a community that designed to attract businesses that will convert goods from the waste stream into recycled products.

      The Recycling Market Development Zone program combines recycling with economic development to fuel new businesses, expand existing ones, create jobs, and divert waste from landfills.

      California's 30 million residents generate 44 million tons of waste each year. Decreasing landfill capacity has forced communities to reconsider what they do with trash. Recycling has diverted waste from landfills at increasing quantities. As the ability to recycle increases, new markets for recycled materials are developed. The Recycling Marketing Development Zones are one fundamental step to creating these markets.

      The RMDZ program provides attractive loans, technical assistance and free product marketing to zone located businesses that use materials from the waste stream to manufacture their products. The zones cover roughly 71,790 square miles of California from the Oregon border to San Diego.


Frequently Asked Questions

Q -What is "market development" of recyclables?
      A -Market development is the creation and development of markets for products made in part from post-consumer waste materials diverted from the waste stream. When these diverted materials are used to produce new products, the products are referred to as recycled-content products.

Q -Why is market development for recyclables important?
      A -With a projected population of more than 36 million by the year 2000, California's waste stream is expected to show tremendous growth through the end of this century. In addition, if California cities and counties meet the mandate of a 50 percent reduction in the amount of waste going to landfills, an additional 15 million tons of recyclables will be available for reuse or recycling by year 2000.

Q -What other benefits can we foresee from market development of recycled materials?
      Jobs. An estimated 20,000 jobs could be created in California's manufacturing sector, another 25,000 jobs in sorting and processing, and tens of thousands more in ancillary jobs.

Is there a market for recycled materials?
      A -Yes, but it fluctuates according to supply and demand and; local, national and international economics. Through its policies, regulations, and State law, the California Integrated Waste Management Board is working vigorously to help create greater demand for recyclable materials-from manufacturers as well as consumers.

Q -Are there barriers to developing markets for recycled materials?
      A -Board analyses show that barriers include the following:

      • Lack of reliable market information.

      • Lack of consistent supplies of sufficient quality.

      • High costs in using secondary materials (i.e., supply of materials generally is
         not matched with demand for those materials at prices that cover collection,          transportation, and processing costs).

      • Manufacturer and consumer wariness of products made from secondary          materials.

      • Financial barriers (e.g., difficulties businesses face in obtaining long-term
         credit). The RMDZ loan program was designed to address the financial
         barriers by providing low-cost, long term financing.

Why is the loan program so important to recycling businesses?
      Many conventional lenders hesitate to fund recycling-based manufacturing because, in their view, it involves unproven technologies. Although the RMDZ loan program requires the same types of security collateral as a conventional lender, familiarity with the industry enables the Board to finance new, yet promising, recycling technologies.

What incentives are local communities providing to businesses?
      Local communities are encouraged to relax or suspend local building codes and zoning laws and to eliminate or reduce construction taxes within zones. They are also encouraged to expand infrastructure to serve recycling businesses.

How has the RMDZ program helped other businesses?
      For examples of what other businesses have done with help from this program, see the business profiles.

Does my business reside in a qualifying area of California?
      To find out, conduct a search of your address.

M O R E    I N F O R M A T I O N

| First Time Home Buyer | RDA First Time Home Buyer |
| FTHB In-Fill Construction | Enterprise Zone | Housing Rehabilitation Loan |
| RDA Rehabilitation Program | RMDZ | Landscape Improvement Program |
| Small Business Loan Program | Business Technical Assistance | Credit Counseling |
| Business Resources |Emergency Home Repair Grant | Minor Home Repair Loan |
| Small Business Development Center | Micro-Enterprise Technical Assistance |

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